Chips & Technologies reports profit for second fiscal quarter.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Jan. 17, 1995--Chips & Technologies Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHPS CHPS Collaborative for High Performance Schools CHPS Certified in Healthcare Privacy and Security CHPS Center for Health Policy Studies (healthcare consulting firm with offices in New York, Maryland, and Illinois) CHPS Combat Hybrid Power System ) Tuesday Tuesday: see week. reported sales of $23.3 million and net income of $2.4 million, or 13 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for its second fiscal quarter ended Dec. 31, 1994. The company posted operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $2.5 million for the quarter, which includes a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). credit of $1.1 million. Chips and Technologies Chips and Technologies (C&T) was the first fabless semiconductor company, a model developed by its founder Gordon Campbell. Its first product was an EGA IBM compatible graphics chip. This was followed by chipsets for PC motherboards and other computer graphics chips. Inc. is an industry leader in portable computer display controller and accelerator accelerator: see particle accelerator. (1) A key combination such as Alt-G or Ctrl-Shift H that is used to activate a task. (2) An incubator that expects to develop the company considerably faster than normal. See incubator. technology, and is a supplier of core logic and other peripheral solutions for personal computers. The results for the quarter ended Dec. 31, 1994 compare with revenues of $20.4 million, and net income of $1.3 million, or 7 cents per share, for the quarter ending Sept. 30, 1994, and with revenues of $22.4 million, and net income of $.7 million, or 4 cents per share, for the quarter ended Dec. 31, 1993. The operating income of $2.5 million for the quarter ending December December: see month. 31, 1994, compares with operating income of $1.2 million for the quarter ended Sept. 30, 1994, and with $.8 million for the quarter ended Dec. 31, 1993. In the absence of restructuring credits, operating income was $1.4 million for the quarter just ended and $.8 million for the quarter ended Sept. 30, 1994. Gross margins for the quarter ended Dec. 31, 1994 were 38%, compared with 37% in the previous quarter and in the quarter ended a year ago. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $6.4 million, including the restructuring credit of $1.1 million. In the absence of the credit, operating expenses were $7.5 million. Operating expenses were $6.4 million in the quarter ended Sept. 30, 1994, and $7.6 million in the quarter ending a year ago. But for the restructuring credit taken in the quarter ended Sept. 30, 1994, operating expenses for that quarter would have been $6.8 million. The restructuring credit applied in the quarter results primarily from the company's receipt of the final payment on the promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. made in favor of upon the side of; favorable to; for the advantage of. See also: favor the company in connection with its sale in 1993 of certain discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: businesses to Techfarm Inc. The company has now been paid in full in connection with that sale. The remainder of the restructuring credit resulted from the completion of the financial aspects of the company's restructuring programs. James Stafford James Francis Cardinal Stafford (born July 26, 1932 in Baltimore, Maryland) is an American prelate and the Major Penitentiary of the Roman Catholic Church, one of the highest ranking members of the Roman Curia from the United States and the second American to serve as Major , president and chief executive officer, stated, "I am pleased to report that our revenues and income from ongoing operations are up from last quarter. The quarterly results, and particularly our steady gross margins, reflect the Company's strength in the growing portable graphics market. "During the most recent quarter, we announced design wins for our portable graphics display controllers with Panasonic
trees of the family Aceraceae. Acer rubrum ingestion of wilted or dries leaves of this tree causes acute hemolytic anemia characterized by red urine, jaundice, anemia and methemoglobinemia in horses. , Gateway 2000, and NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. . We are proud to have become a recognized leader in the portable graphics marketplace." About Chips and Technologies Chips and Technologies Inc. (NASDAQ:CHPS) supplies advanced semiconductor devices to the worldwide personal computer industry. The company pioneered the concept of implementing discrete system A discrete system or discrete-time system, as opposed to a continuous-time system, is one in which the signals are sampled periodically. It is usually used to connote an analog sampled system, rather than a digital sampled system, which uses quantized values. functions in highly integrated chipsets. CHIPS' products are found in a wide range of systems from compact portables to high-performance desktop computers. -O-
CHIPS AND TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except per share amounts)
Three Months Ended Six Months Ended
Dec. 31, Dec. 31,
1994 1993 1994 1993
Net sales $ 23,277 $ 22,438 $ 43,650 $ 43,609 Cost of sales and other manufacturing expenses 14,418 14,060 27,153 27,173
Gross margin 8,859 8,378 16,497 16,436
Operating expenses Research and development 3,286 3,349 6,294 6,607 Marketing and selling 2,930 2,914 5,735 6,031 General and administrative 1,200 1,324 2,197 2,995 Restructuring recovery (1,057) -- (1,429) --
Total operating expenses 6,359 7,587 12,797 15,633
Income from operations 2,500 791 3,700 803 Interest income and other, net 134 11 244 355 Income before taxes 2,634 802 3,944 1,158 Provision for income taxes (263) (82) (317) (116) Net income $ 2,371 $ 720 $ 3,627 $ 1,042 Net income per share Primary $ 0.13 $ 0.04 $ 0.21 $ 0.06 Fully diluted $ 0.13 $ 0.04 $ 0.20 $ 0.06 Shares used in per share calculation Primary 18,206 17,250 17,069 16,698 Fully diluted 19,967 17,252 18,537 16,699
CHIPS AND TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands Dec. 31, June 30,
except share amounts) 1994 1994
(unaudited)
Assets Current assets: Cash and cash equivalents $ 15,082 $ 17,372 Short-term investments 6,682 5,171 Accounts receivable, net of allowance for doubtful accounts of $985 and $1,269, respectively 10,788 8,437(a) Inventory 9,491 5,845 Prepaid and other assets 2,514 3,100
Total current assets 44,557 39,925
Property and equipment, net 10,388 10,325
Other assets 649 1,050
------ ------
$ 55,594 $ 51,300
Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 6,267 $ 7,081 Current portion of capitalized lease obligations 563 571 Other accrued liabilities 7,850 6,850(a) Accrued restructuring costs 0 1,542
Total current liabilities 14,680 16,044
Long-term capitalized lease obligations, less
current portion 728 100
Noncurrent notes payable 889 919
Convertible debentures 7,910 7,910
Total liabilities 24,207 24,973
Stockholders' equity: Convertible preferred stock, 69,000 and 123,000 shares issued and outstanding 1 1 Common stock, 17,294,000 and 16,881,000 shares issued and outstanding 172 169 Capital in excess of par value 60,754 59,222 Notes receivable from officer (102) -- Retained deficit (29,438) (33,065)
Total stockholders' equity 31,387 26,327
------ ------
$ 55,594 $ 51,300
(a) Account balance has been reclassified due to changing the presentation of certain distributor revenue reserves. CONTACT: Chips & Technologies, San Jose Tim Christoffersen, 408/434-0600 |
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